LIPP: Europa Capital and M7 announces the purchase of a further six estates (UK)

The Light Industrial Property Partnership ('LIPP'), a joint venture between Europa Fund III and M7 Real Estate, has continued its acquisition program with the purchase of a further six estates at an aggregate price of c. £12.6 mln (approx. €15.5 mln).

The purchase includes four estates acquired from an institutional investor – South Gyle, Edinburgh; Halifax Industrial Estate, Halifax; Cromwell Trading Estate, Stockport and Ashmount Business Park, Swansea together with individual estate purchases at Bilton Industrial Estate, Kings Norton, Birmingham and Bracknell Business Centre, Bracknell.

The total current income is £1.329 mln (approx. €1.643 mln) p.a. with a full reversion to £1.583 m p.a., providing an initial yield of circa 10%. The six estates combine to provide 354,000 ft² (approx. 32,886 m²) in 74 units.

The purchases follow on from LIPP's recent £800,000 (approx. €989,117) sale of the Llandudno Junction Industrial Estate in North Wales, acquired within their purchase of the Heritage Portfolio during the summer.

As a result of this activity, LIPP now comprises a total of 31 assets and a portfolio of over 2.62 mln ft² (approx. 243,398 m²) in almost 500 units.

Matthew Cheyne, Partner at M7 Real Estate commented: "We are delighted to have secured these latest acquisitions, and look forward to assimilating the new properties within the asset management strategy for the existing portfolio."

Rob Sim, Partner and Head of Northern Europe at Europa Capital added: "The LIPP joint venture has delivered some pleasing returns over the last three years, and we anticipate these new purchases will make a meaningful contribution to the future performance of this investment."

Source: RLM Finsbury

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